London, (Business News Report)|| The Group of Twenty (G20) finance ministers have warned that rising inflation carries a potential risk to the outlook of the global economy.
The G20 stressed the need to continue monitoring global risks, including those arising from the current geopolitical tension and macroeconomic vulnerabilities.
The finance ministers said that the recovery of the global economy continues, but the waves of the Coronavirus and the emergence of new variants strains may slow the pace of recovery.
In turn, Saudi Finance Minister Mohammed Al-Jadaan stressed the importance of taking into account the medium and long-term repercussions of the pandemic on sustainability and financial stability.
Al-Jadaan added, “We also have to consider the main factors of inflation in commodity and food prices at the global level, such as supply chain disruptions, increased shipping costs, and the unintended consequences of some policies taken in the context of addressing climate change.”
Meanwhile, the Indonesian president, whose country holds the rotating presidency of the group, warned that the crisis in Ukraine poses a threat to the post-pandemic economic recovery.
President Joko Widodo, at the opening of the two-day meeting, also touched on the risks to the fragile economic recovery as a result of the crisis in Ukraine, where fears of a Russian invasion are growing.
He urged the Group of Twenty, which includes Russia, to focus on “cooperation” in order to strengthen the global economy.
In turn, US Treasury Secretary Janet Yellen said in a video call: “We must act urgently to strengthen the global health architecture so that we have the tools to prevent, prepare for, and respond to future health crises.”
“To complement our stronger coordination, we must also focus on mobilizing the funding needed to address gaps in the system,” she added.
Calls for new financing mechanisms are mounting, especially in the wake of challenges that emerged in the production and distribution of vaccines.
Yellen said the funding needs are undeniable, while the amount needed for the next five years is estimated to be $75 billion.
In tern, Tedros Adhanom Ghebreyesus, Director-General of the World Health Organization said: “Any efforts to strengthen the global health security architecture can only succeed if they also strengthen WHO’s role at its centre, rather than creating further mechanisms that would only create further fragmentation and potentially leave the world less safe.”
